office, and account has been taken of the views expressed by Hia Majesty's Ambassador in Nanking in the latter's despatch to the secretary of state for Foreign Affairs, No.214 repeated to Hong Kong by safe hand as No.124,
of the 12th June, 1947, As a result of thet study I agree with the view that no substantial advantage would be gained by an attempt to
secure the zubordination of the local Heed of the Kuomintang in Hong Kong to the diploms tie representative of the Chinese Government in the Colony. as regards the longer ter objective proposed by Bir Mark Young, however, I am advised that, whatever may be the theoretical position in regard to the termination of one-proty Government in Jhing, in fact en for all practical purposes the Kuomintang is still the Covernment party; and consequently that any such ärastic action es their expulsion from Hong Kong would almost certainly lead to reboliatory measures against hong kong by the Chinese Government. There is also the denger that such Letion might have repercussions elsewhere.
3. At the same time I am advised that, should there be a deterioration in the internal situation in Chins leading to a serious teøkening of the authority of the Nanizing Government, or even to its complete disintegration, then it is quite possible that in these circumstances the expulsion of the Kuomintang from Hong Kong could be affected without that serious risk of retaliation which would be incu’red it Buch drastic action were to be taken whilst the Kuomintang enjoys de facts its present privileged status in China.
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